Canada Household Debt Reaches Record High in Fourth Quarter

Canadians owe 1.63 Canadian dollars for every dollar of disposable income

OTTAWA—Household debt hit a fresh high in Canada in the fourth quarter as Canadians’ borrowings grew faster than their disposable incomes.

Canadian policy makers have flagged high household debt as a major concern in recent years, as a lengthy period of low interest rates has prompted Canadians to pile on debt, mainly in the form of mortgages. The Bank of Canada says elevated household debt is the main domestic risk to the economy.